If an Economy Is Operating at Potential Output

question 53

Multiple Choice

If an economy is operating at potential output:

• A)any surplus would be a cyclical surplus.
• B)any surplus would be a structural surplus.
• C)a budget surplus is impossible.
• D)the budget must be in surplus.

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Definitions:

Union Representation

The act of being represented by a labor union or trade union in negotiations and legal matters with an employer.

Card-Signing Campaign

A union organizing strategy where employees sign cards indicating their support for union representation in the workplace.

Distributive Bargaining

A negotiation strategy that involves a fixed amount of resources being divided between parties, often leading to a win-lose scenario.

Win-Lose Situation

A competitive scenario where one party's gain is inherently due to another party's loss, emphasizing a zero-sum outcome.